ASIC Suspends Unlicensed CFD Traders For Ten Years

He was formerly employed as a Director at Suncoast Trading (operated as Equity Trade).

He promised customers guaranteed large profits on managed CFDs trading.

The Australian Securities and Investments Commission (ASIC) has barred Mark Jennings of Queensland from providing financial services or managing any financial services business entity for 10 years.

Jennings was found to have fraudulently promoted that he could deliver guaranteed profits from contracts for differences (CFDs) trading and providing services without the requisite license, according to an announcement made on Tuesday.

Jennings is a former Director of Suncoast Trading Pty Ltd (formerly Equity Trade), a trading business that is now in liquidation. The firm went bankrupt after suffering huge losses while trading with customer funds.

According to the Australian authority, Jennings advertised for Equity Trade with high guaranteed profits for his clientele. He promised to be able to generate “50%, 100%, or 200% each year GUARANTEED RETURNS.”

Furthermore, according to the Equity Trade website, the company's investments are “recession-proof” since they earn from “both rising and declining markets.” And all of these services were provided without a license.

According to ASIC, Jennings conducted his investment firm without an Australia Financial Service (AFS) license, which is required for such activities. There was also evidence of money laundering, as he forced certain customers to put monies into his personal trading account and trade CFDs without consulting them.

Furthermore, he was accused of making fraudulent and deceptive statements about assured profits. Indeed, traders may benefit from both rising and declining markets when using CFDs. However, these products are exceedingly dangerous, and the vast majority of ordinary traders lose money while trading CFDs. Retail brokers are even required by UK and European authorities to reveal the proportion of their customers that lose money.

Furthermore, Jennings presented the regulator with incorrect or misleading information about the number of Equity Trade customers and the degree of their losses. Furthermore, the regulator determined that he is not appropriately qualified or competent to provide financial services and “is likely to violate a financial services legislation.”

Crackdowns by ASIC

Australia is regarded as one of the more developed CFDs marketplaces. Several well-known retail brokers have their headquarters in the country, and several foreign firms are developing there as well. Meanwhile, ASIC maintains rigorous industry restrictions and enforces severe limitations on leverage and marketing practices until May 2027.

ASIC banned a former manager of CFDs broker Trade360 for eight years earlier this month, criticizing him for not being “adequately qualified and competent.” Meanwhile, earlier this year, the regulator got a court judgment against another trader, condemning him to jail for nine months for trading CFDs using insider knowledge.

About ASIC

The Australian Securities and Investments Commission (ASIC) is an independent Australian government entity that serves as Australia's business regulator. It was founded on July 1, 1998, in response to the Wallis Inquiry's recommendations. The purpose of ASIC is to enforce and regulate corporate and financial services laws in order to safeguard Australian consumers, investors, and creditors. The Australian Securities and Investments Commission Act, of 2001 established ASIC's jurisdiction and scope.

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